Published
By Myrna M. Velasco
The operator of the
Wholesale Electricity Spot Market (WESM) has been directed to refund P1.774 billion
to its trading participants; due to “miscalculation” in the net settlement
surplus (NSS) allocations and settlements in the spot market.
The Energy Regulatory
Commission (ERC) said the market operator (MO) or the Philippine Electricity
Market Corporation (PEMC) shall carry out adjustments in its billed NSS or do a
refund to the trading participants.
Considered trading participants are the generation companies (GenCos) that have
been offering their capacities in the WESM; as well as the directly registered
distribution utilities and electric cooperatives that have been purchasing part
of their supply from the spot market.
The miscalculations in
NSS, according to the regulatory body, had accrued from the billing months of
June 2018 to May this year.
The ERC emphasized that
based on its findings, it was able to flag “inconsistencies in the share of
generators and customers in the NSS allocations issued by PEMC or the market
operator (MO).”
The Commission further
noted that “upon validation, PEMC/MO reported to the ERC that the
miscalculations were caused by its erroneous applications of the formula in its
software that is used to determine NSS allocations.”
From that, the regulatory body specified that it has applied the necessary
corrections, hence, it is now directing PEMC or the MO to enforce corresponding
refund or billing adjustments to its customers.
“As a result of the
corrections in the NSS allocations ordered by the Commission, WESM trading
participants are expected to either be entitled to a refund or will be made to
return excess allocations,” the ERC said.
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